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India Life Insurance Market

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India Life Insurance Market, By Insurance Type (Individual, Group), By Distribution Channel (Direct, Agency, Banks, Others), By Region (North India, South India, East India, West India) Trend Analysis, Competitive Market Share & Forecast, 2018-2028

  • Published Date: January 2022
  • Report ID: BWC21214
  • Available Format: PDF
  • Page: 116

Report Overview

India life insurance market is driven by the growing burden of life-threatening illnesses in India and increasing awareness among the general public regarding the benefits of such policies. Additionally, favorable government initiatives, such as Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), are also favoring the market growth.

India Life Insurance Market- Industry Trends & Forecast Report 2028

India life insurance market is thriving and estimated to grow at a CAGR of 6.0% during the forecast period (2022-2028). Life insurance is the fastest growing sector in India because of the growing burden of life-threatening illnesses in India and increasing awareness among the general public regarding the benefits of these policies. Furthermore, favorable government initiatives, such as Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) are also propelling the growth of the India life insurance market.

India Life Insurance Market- Overview

Life insurance is a contract between a policyholder and the insurer to pay a specific amount to the designated beneficiary upon the death of the insured person. Additionally, some life insurance policies cover critical life events such as critical illnesses and severe accidents. If the only bread earner of a family passes away, then these policies benefit the family members by helping to pay for critical costs such as loans, childcare, education, health, etc.

India Life Insurance Market Forecast and Trends

Growth Drivers

Favorable Government Initiatives to Boost Life Insurance Adoption

The Government of India is taking various initiatives to boost the adoption of life insurance coverage among general uncovered citizens. To boost investment in the life insurance sector, the government has recently allowed FDI in domestic insurance companies up to 49% from 26% in 2016. Also, the Indian government has launched the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), which is being offered by Life Insurance Corporation, which provides 2 lakhs of life insurance cover. Also, the General Insurance Business (Nationalisation) Amendment Bill was passed by Parliament in August 2021. The bill seeks to privatize state-run general insurance companies. Such promising initiatives by the Indian government are likely to favor the growth of the India life insurance market.

Launch of New Products by Life Insurance Companies

As the demand for life insurance policies is increasing in India, insurance companies in the country are offering various new products to attract customers. For instance, Max Life Insurance launched ‘Max Life Saral Pension’, a non-linked, individual immediate annuity plan in May 2021. Following the suite, Aditya Birla Sun Life Insurance announced the launch of a new Vision LifeIncome Plus Plan that will provide guaranteed regular income plus flexible bonus payouts to policyholders. Such launches provide customers to choose from a wide variety of options, thereby driving the market’s growth.

Restraints

High Premium Rates of Life Insurance Policies

People with lower incomes, who compose the majority of the Indian population, do not opt for life insurance policies. According to a report published by Economic Times, large reinsurance companies will raise their charges in 2021, thus escalating the cost of life insurance. Premiums are also predicted to rise by 20% to 40% in the coming years. The increase in charges could directly affect the demand for policies just as they are catching on after the COVID-19 pandemic.

Impact of COVID-19 on India Life Insurance Market

The sudden COVID-19 pandemic outbreak and the increasing number of infections cases have had a positive influence on the India life insurance market. According to a report by the Mint, inquiries regarding life insurance plans witnessed a significant surge even after the second wave of COVID-19 was declining. Furthermore, according to the report, the purchase of term life insurance increased by 30% during the peak months of April and May of 2021. The need for financial security after such unprecedented times is expected to drive the India life insurance market growth during the forecast period.

India Life Insurance Market - By Insurance Type

Based on insurance types, the India life insurance market is segmented into individual and group. The individual segment accounts for the largest share in the India life insurance market. This is because individual policies are mostly opted by the breadwinner of the family. In addition, individual life insurance policies offer many benefits, such as the ability to cover a mortgage or personal loan. Additionally, the increasing number of individual life insurance policies provided by employers to their employees contributes significantly to the market's growth.

India Life Insurance Market - Regional Insights

Geographically, the India life insurance market is segmented into North India, South India, East India, and West India. Among these regions, the Western region of India dominates the India life insurance market. Maharashtra leads the market with the highest state-wise premium collection by all life insurance companies. South India also covers a substantial share in the market with states like Tamil Nadu, Karnataka, Andhra Pradesh, Kerala, etc., topping the list in premium collection. High literacy plays an important role in driving market growth as it raises consumer awareness about life insurance benefits.

India Life Insurance Market - Competitive Landscape

The leading players in the India life insurance market are Aditya Birla Sun Life Insurance Company, Bajaj Allianz Life Insurance Company, Bharti AXA Life Insurance Company, Canara HSBC OBC Life Insurance Company, HDFC Life Insurance Company, ICICI Prudential Life Insurance Company, Kotak Mahindra Life Insurance Company, Max Life Insurance Company, Reliance Nippon Life Insurance Company, SBI Life Insurance Company, Tata AIA Life Insurance Company, and other prominent players.

The market is highly fragmented with the presence of several established players. The insurance companies offer a variety of benefits and deals to attract customers. They offer and launch a variety of policies that cater to different investment needs and objectives. Additionally, to stay competitive, companies utilize various strategies, such as partnerships, mergers, acquisitions, joint ventures, etc. Furthermore, the implementation of inorganic strategies such as advertising and marketing is also prominent in this market.

Recent Development

  • In December 2021, The Life Insurance Corporation of India (LIC) launched a non-linked, non-participating individual savings life insurance plan, with added premium discounts for women and the third gender.

Scope of the Report:

Attributes Details
Years Considered Historical data – 2018-2021
Base Year – 2021
Forecast – 2022 – 2028
Facts Covered Revenue in USD Billion
Market Coverage North India, South India, East India, and West India
Product Service/Segmentation By Insurance Type, By Distribution Channel, By Region 
Key Players Aditya Birla Sun Life Insurance Company, Bajaj Allianz Life Insurance Company, Bharti AXA Life Insurance Company, Canara HSBC OBC Life Insurance Company, HDFC Life Insurance Company, ICICI Prudential Life Insurance Company, Kotak Mahindra Life Insurance Company, Max Life Insurance Company, Reliance Nippon Life Insurance Company, SBI Life Insurance Company, Tata AIA Life Insurance Company, and other prominent players.


By Insurance Type

  • Individual
  • Group

By Distribution Channel

  • Direct
  • Agency
  • Banks
  • Others

By Region

  • North India
  • South India
  • East India
  • West India
  1. Research Framework
    1. Research Objective
    2. Product Overview
    3. Key Market Segments
  2. Research Methodology
    1. Qualitative Research
    2. Methodology
    3. Regional Split of Primary & Secondary Research
    4. Secondary Research
    5. Primary Research
      1. Breakdown of Primary Research Respondents, By Region
      2. Breakdown of Primary Research Respondents, By Industry Participants
    6. Market Size Estimation
    7. Assumptions for the Study
    8. Market Breakdown & Data Triangulation
  3. Executive Summary
  4. Industry Insight and Growth Strategy
    1. Value Chain Analysis
    2. DROC Analysis
      1. Market Drivers
        1. Favorable Government Initiatives to Boost Life Insurance Adoption
        2. Launch of New Products by Life Insurance Companies
      2. Market Restraints
        1. High Premium Rates of Life Insurance Policies
      3. Market Challenges
        1. Negative Perception of General Public Against Life Insurance
      4. Market Opportunity
        1. Tax Benefits of Life Insurance
        2. Increasing Adoption of Insurtech in Life Insurance
    3. Recent Developments
    4. Porter’s Five Forces Analysis
      1. Bargaining Power of Buyers
      2. Bargaining Power of Suppliers
      3. Intensity of Rivalry
      4. Threat of New Entrants
      5. Threat of Substitutes
  5. India Life Insurance Market Overview
    1. Market Size & Forecast by Value, 2018-2028
    2. Market Size and Forecast, By Segment
      1. By Insurance Type
        1. Individual
        2. Group
      2. By Distribution Channel
        1. Direct
        2. Agency
        3. Banks
        4. Others
      3. By Region
        1. North India
        2. South India
        3. East India
        4. West India
  6. Competitive Landscape
    1. List of Key Players and Their Offerings
    2. Market Share Analysis (2021)
    3. Competitive Benchmarking by Operating Parameters
  7. Impact of COVID-19 on India Life Insurance Market
  8. Company Profiles (Company Overview, Financial Matrix, Key Product landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook) *
    1. Aditya Birla Sun Life Insurance Company
    2. Bajaj Allianz Life Insurance Company
    3. Bharti AXA Life Insurance Company
    4. Canara HSBC OBC Life Insurance Company
    5. HDFC Life Insurance Company
    6. ICICI Prudential Life Insurance Company
    7. Kotak Mahindra Life Insurance Company
    8. Max Life Insurance Company
    9. Reliance Nippon Life Insurance Company
    10. SBI Life Insurance Company
    11. Tata AIA Life Insurance Company
    12. Other Prominent Players
  9. Key Strategic Recommendations

 

List of Figures

 

Figure 1: India Life Insurance Market Segmentation

 

Figure 2: India Life Insurance Market Value Chain Analysis,

 

Figure 3: Company Market Share Analysis, 2021

 

Figure 4: India Life Insurance Market Size, By Value (USD Billion), 2018-2028

 

Figure 5: India Life Insurance Market Share (%), By Insurance Type, By Value, 2018-2028

 

Figure 6: India Life Insurance Market Share (%), By Distribution Channel, By Value, 2018-2028

 

Figure 7: India Life Insurance Market Share (%), By Region, By Value, 2018-2028

 

 

List of Tables

 

 

Table 1: India Life Insurance Market Size, By Insurance Type, By Value, 2018-2028

 

Table 2: India Life Insurance Market Size, By Distribution Channel, By Value (USD Billion), 2018-2028

 

Table 3: India Life Insurance Market Size, By Region, By Value (USD Billion), 2018-2028

 

Table 4: Aditya Birla Sun Life Insurance Company Financial Analysis

Table 5: Aditya Birla Sun Life Insurance Company Business Overview

Table 6: Bajaj Allianz Life Insurance Company Financial Analysis

Table 7: Bajaj Allianz Life Insurance Company Business Overview

Table 8: Bharti AXA Life Insurance Company Financial Analysis

Table 9: Bharti AXA Life Insurance Company Business Overview

Table 10: Canara HSBC OBC Life Insurance Company Financial Analysis

Table 11: Canara HSBC OBC Life Insurance Company Business Overview

Table 12: HDFC Life Insurance Company Financial Analysis

Table 13: HDFC Life Insurance Company Business Overview

Table 14: ICICI Prudential Life Insurance Company Financial Analysis

Table 15: ICICI Prudential Life Insurance Company Business Overview

Table 16: Kotak Mahindra Life Insurance Company Financial Analysis

Table 17: Kotak Mahindra Life Insurance Company Business Overview

Table 18: Max Life Insurance Company Financial Analysis

Table 19: Max Life Insurance Company Business Overview

Table 20: Reliance Nippon Life Insurance Company Financial Analysis

Table 21: Reliance Nippon Life Insurance Company Business Overview

Table 22: SBI Life Insurance Company Financial Analysis

Table 23: SBI Life Insurance Company Business Overview

Table 24: Tata AIA Life Insurance Company Financial Analysis

Table 25: Tata AIA Life Insurance Company Business Overview

 

 

Market Segmentation

By Insurance Type

  • Individual
  • Group

By Distribution Channel

  • Direct
  • Agency
  • Banks
  • Others

By Region

  • North India
  • South India
  • East India
  • West India
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